Budget delivers over $2 billion extra for health

The Government has announced an additional $2.1
billion investment in health priorities over the next four
years – including an extra $512 million in 2010/11.

This
includes $1.77 billion of new operating funding, $186
million from reprioritised operating spending, and $142
million for capital investment over four
years.

“District Health Boards will directly receive
$1.4 billion extra over four years, and will also receive a
large share of the extra funding going to targeted
initiatives such as elective surgery and medicines,”
Health Minister Tony Ryall says.

“This is a
significant funding increase in the light of the continuing
difficult economic situation. It will help protect our
public health services in real terms against inflation and
fully fund population growth.

“Vote Health is also the
single biggest item of new operating spending in Budget
2010, reflecting this Government's commitment to maintain
and improve frontline health services for New Zealanders.

“Over the next four years, we have increased funding
for mental health services by $40 million, and there has
also been some reprioritisation within mental health. In
addition, it is expected DHBs will allocate $174 million to
mental health from the new $1.4 billion that DHBs receive
directly.”

Earlier this month, the Government
announced $24 million of new spending over four years for a
pilot programme to assess the feasibility of a national
bowel cancer screening programme.

About $186 million over
four years of lower priority spending has also been
identified and shifted to high priority and frontline public
health services.

The new priorities include 20 new medical
training places in 2010/11, the second tranche of the
Government's initiative to establish 200 new training places
annually. Around $8 million over four years has been
transferred to Vote Education for this.

Funding for
medicines will increase by $80 million over the next four
years, with $40 million of this to be met from DHBs’
budgets, and an extra $40 million being invested by the
Government.

The Government continues to invest heavily to
provide additional elective procedures as part of its
pre-election commitment to better, sooner, more convenient
health services for New Zealanders. This includes:

• An
extra $10.2 million committed in the current 2009/10 year
for electives including cardiac surgery.• • An
extra $51.5 million over the next four years for additional
elective surgery.• • An extra $8 million over
the next four years for breast reconstruction
surgery.• Other extra health funding in the Budget
over the next four years includes:

• $109 million for
primary care services, and there has also been some
reprioritisation within primary care. • • $93
million to fund disability services and equipment.
• • $46 million for health screening services.
• “The new resources announced today will help
us continue improving frontline health services for
patients,” Mr Ryall
says.

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